Curves Mixed, Little Meaningful Net Change On Day

Core global FI markets are off best levels, with limited net change seen on the day at typing,

• Softer-than-expected German ifo data (on the heels of last week’s soft flash PMI prints) helped underpin during the European morning, despite warnings from various ECB speakers re: the degree of easing priced/early cuts and Cleveland Fed President Mester (set to depart the role in mid-’24) providing similar soundbites.
• The failure of bulls to push Bund futures meaningfully through last week’s high (with 10-Year yields holding above 2.00%), provided a limiting factor for the wider space.
• Oil bouncing from session lows also helps cap bonds.
• Cash Tsys twist steepen, with yields -2bp to +1.5bp.
• German yields are 0.5-1.5bp higher across the curve, with a very modest flattening bias seen.
• UK yields are flat to 2.5bp lower, with the feedthrough from the BoE’s Q124 APF sales schedule/rejig of amounts to be sold vs. the previous ‘norms’ promoting a flattening bias in the time since its Friday release.